Why not honor Rama’s SRP deals?
The “former political has-been” plans to apply for a P3-billion loan with a government financial institution to finance the City’s various infrastructure projects, especially the drainage system. But this is strongly opposed by some opposition councilors, saying the City has enough money to be used for projects. The opposition councilors are referring to the P8-billion advance payment from the sale of lots at the South Road Properties (SRP) during the term of “has-been mayor” Michael Rama.
Rama sold several hectares of SRP lots to the three major land developers--SM Prime Holdings, Ayala Land Inc. and Filinvest Land Inc.--for an estimated amount of P16 billion. The full amount will be paid after three years. But upon his assumption after “clobbering” Rama in last year’s elections, he did not recognize the deal, claiming it was very anomalous and disadvantageous to the City.
He was saying around town that he wants to rescind the contract and file a case against Rama. But i has been more than a year now, no charges has been filed against Rama and his lawyers have not initiated any move to rescind the contract.
He refused to use the advance payment, saying it is a “fruit of the poisonous tree.” He tried to exert pressure against the buyers, thinking that they would voluntarily “give up” and rescind the contracts. He ran after a Banco de Oro (DBO) branch, an affiliate of SM Prime Holdings, by questioning the bank’s income and the taxes it paid. He filed a tax evasion case against the bank’s manager and company’s officers but the case did not prosper.
According to some legal experts, rescinding a multi-billion contract will take a long legal process and the City will spend huge amounts to cancel the entire contract. And mind you, the other parties are billionaires. They won’t take the case sitting down. They will fight it out in court. Civil cases take a long time. If a case is pending, then it’s status quo. Meaning, the buyers cannot initiate any development in the area and the seller cannot use the proceeds from the sale. So the properties bought by the developers will be idle while there is a pending litigation.
We know that the move of the “former political has-been” is coupled with personal agenda and vendetta to the buyers. Long before, he already warned the buyers not to buy during Rama’s administration and to wait for him to regain the control of City Hall. But SM Prime Holdings, Ayala Land and Filinvest defied his warning. And that is the result now. He is running after the companies.
The problem with this person is that if it is his deal, it’s all aboveboard. But if it’s other people’s deal, it’s anomalous. During the first deal, he sold SRP lots to SM and Filinvest, where the SM Seaside and Filinvest condominiums stand, at P9,000 per square meter, with the City paying the capital gains tax.
He was already in a hospital in Houston, Texas for his urinary bladder cancer operation but he went home when the deal was consummated with then acting mayor Mike Rama as signatories. Ambot ug unsay gi-uli nga nagkasakit naman siya? Dawat siguro sa bahin.
In the second deal, Mike sold it at P38,000 per square meter with the buyers’ paying the capital gains tax. Now, with him calling the shots, the “former political has-been” wants to sell it at P110,000 per square meter. He plans to dispose of three hectares and the council already authorized him to sell. I don’t know if there is any interested buyer with that rate. Aw, atong huwaton og naa bay mopalit. But why doesn’t he just honor Rama’s deal so the City and SRP can move on?